By Jagoda Darlak and Matteo Allievi
(Reuters) -Swiss perfume and flavour maker Givaudan reported third-quarter gross sales above expectations on Thursday pushed by sustained excessive demand throughout its markets.
Givaudan’s quarterly gross sales rose 10.2% to 1.91 billion Swiss francs ($2.22 billion) on a reported foundation, forward of analysts’ common forecast of 1.86 billion francs in a ballot compiled by the corporate.
Whereas the remainder of the European chemical compounds sector, and Germany specifically, is grappling with weak demand amid a sluggish financial system, corporations engaged within the perfume and flavour markets have seen a robust enhance in gross sales.
A wave of destocking amid softer demand hit Givaudan’s volumes final 12 months, however sturdy gross sales progress has boosted its profitability since then.
“We are able to continue to support the strong and broad based volume demand from our customers,” CEO Gilles Andrier stated within the assertion.
On a like-for-like foundation, Givaudan’s gross sales rose 14.1% within the third quarter, above the ten.4% progress anticipated by analysts, and a 3rd straight quarter of double-digit share progress.
Like-for-like gross sales at its Style & Wellbeing enterprise, which makes up greater than half of Givaudan’s income, rose 12.4% from a 12 months earlier, whereas gross sales on the Perfume & Magnificence unit have been up 16.0%.
“The highlight of Q3 is the acceleration in Taste which has been lagging the exceptionally strong Fragrance business for quite some time,” Vontobel analyst Arben Hasanaj stated.
Relying on how the buyer sentiment develops, subsequent 12 months ought to see a way more normalised surroundings, Hasanaj added.
Givaudan’s January-September gross sales rose in all areas. The best like-for-like enhance was seen in Latin America at 29.5%, whereas North American gross sales grew 5.7% in comparison with a decline of 9.3% final 12 months.
It reiterated the goal for common natural gross sales progress of 4-5% per 12 months till 2025, with free money circulate progress of no less than 12%.
Givaudan’s shares have been up 0.8% by 0740 GMT, after spiking 4% earlier within the session.
($1 = 0.8604 Swiss francs)
